EXECUTIVE SUMMARY

My client controls the largest high purity gypsum resource in North America, estimated at slightly than one billion tons, on five mining claim groups. The claims total about 17,000 acres of which 9,725 acres are underlain with gypsum. These gypsum deposits are secured by 108 association mining claims. All claims were staked before 1990. All claims are properly located and assessment work has been performed. The project is the largest in North America with purity of 98% plus and nearby cheap energy source (a natural gas processing plant is approximately 15 miles from the project The property also holds one of North America’s largest sulfur deposits containing over 180 million tons at 18% contained value.


THE BUSINESS OPPORTUNITY:

There could not be a more favorable time to invest in the multi-billion dollar gypsum market. Gypsum is everywhere. It covers the interior of more than 97% of the new homes constructed in the United States and Canada. In addition, it is used by the farming community as a fertilizer and soil conditioner increasing the productivity of farm land throughout the world. It also is used for plaster of Paris, cement, added to paint as filler, and even used as a coagulant for tofu. Currently, the nation and world economies are coming out of a deep recession reducing gypsum-related construction business. However, recessions in the construction industry have typically been followed by periods of strong recovery and growth. If the recovery from this cycle is similar to the recoveries from past cycles, the company will generate significant and lucrative opportunities when the markets recover. During these recovery cycles, the US gypsum supply cannot keep up with demand. Large imports from Canada augment domestic supplies for wallboard manufacturing in the United States, particularly in the eastern and southern coastal regions. Furthermore, China and other developing nations housing markets remain poised for recovery and growth. In addition, there is an enormous market opportunity to sell gypsum into the agricultural market. Gypsum allows farmers to reduce or eliminate tillage in farm soil, reducing its carbon footprint, thereby generating substantial carbon credits back to the farmers. In addition, it Increases drought tolerance of plants. Additionally, other gypsum-related businesses not associated with the construction or agricultural industry remained poised to grow.

We are absolutely convinced this is an opportune time to take advantage of the impending global economic recovery. The project’s strong competitive advantages are compelling. It’s the perfect time to place the project into lucrative long-term production to produce basic and value-added products for the construction and agricultural markets.


 THE PROJECT

There is a good potential to develop large measured reserves within this resource by drilling and trenching known zones of thick massive gypsum beds with minimal overburden and waste. In addition, it is possible to produce several value added products from Natural Gypsum with high values including sulfur, sulfuric acid, soda ash, ammonium sulphate, calcium chloride, and sodium hydrosulfide. The gypsum deposits offer promising potential as a major raw material supply for a wall-board manufacturing facility with by-product gypsum production for cement retardant, agricultural gypsum, filler, and other uses. Considering the readily available local natural gas supply and favorable rail and highway transport accessibility, they would also offer promise as major limestone, sulfur, sulfuric acid, and ammonium sulfate raw material sources under favorable market conditions. The project offers particular promise to large natural resource companies who have strategic plans to tie up major construction material and/or chemical mineral resources for longterm development. The deposits lie in an area with no apparent major environmental constraints or permitting restrictions, except one wildlife preserve area on one of the claim groups. Extensive bentonite mining in areas immediately to the West over a long period has established a pattern of open-pit mining activity in this area.

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 THE CLAIMS

The following summarizes the five mining claims – by gypsum bed thickness, tons of ore availability, and resource area acreage.

Mary

  • Gypsum Bed Thickness = 27-93 Feet
  • Resource Area = 2,205 Acres

Linda

  • Gypsum Bed Thickness = 32 Feet
  • Resource Area = 2,516 Acres

Brad

  • Gypsum Bed Thickness = 60-82 Feet
  • Resource Area = 2,205 Acres

Grace

  • Gypsum Bed Thickness = 82-102 Feet
  • Resource Area = 632 Acres

Janet

  • Gypsum Bed Thickness = 80 Feet
  • Resource Area = 1,190 Acres

INFRASTRUCTURE:

Worland is the county seat and principal supply point within the region. It has a population of 8,000 and an economy based on agriculture, ranching, tourism, oil and gas production, and mineral mining and processing.

Manderson is a small community offering excellent plant site potential on rail and highway routes. Water is available in Worland and Manderson from established water districts, as well as from nearby groundwater sources in the Bighorn River Valley. Natural gas and electricity are available in the region from Wyoming Gas and Pacific Power & Light, respectively. Natural gas may also be available from small gas fields up to 15 miles west of the Ten Sleep gypsum deposits. A ready labor force exists in the Worland-Manderson-Basin area.


LOCATION:

The project is located in Big Horn County, Northern Wyoming, near the town of Worland (see state and county maps below). The claims total about 17,000 acres. Four of the five mining claim groups lie between or near Ten Sleep and Hyattsville, Wyoming, which are about 18 miles apart. The fifth claim group lies about 40 road miles south of Ten Sleep. County roads provide access to all claim groups, and BLM roads reach more inaccessible areas. Paved highways from Ten Sleep and Hyattsville allow easy truck transport to Worland and Manderson respectively at a distance of 25 to 35 miles from most deposit areas. The Burlington Northern Railroad provides North-South rail freight service through Worland and Manderson, with ready connections to mainline service near Billings. Worland is 450 road miles from Denver and 162 road miles from Billings. Commuter air service is available from Worland with several flights daily from Denver and Riverton.

county view


 OUR ADVANTAGE:

Simply put, our gypsum is exceptionally pure and has already garnered significant interest throughout the industry. A mine’s yield is directly correlated to the purity of its gypsum. Most gypsum contains 10% to 15% impurities. In general, the amount of impurity that can be tolerated depends on the type of impurity, the product being manufactured, and the competitive situation. Producing high-quality gypsum requires the removal of several unwanted byproducts; chief among these are silica, iron, and aluminum oxide. The importance of removing the byproducts is crucial because the gypsum must maintain a purity of 95% in order to be sold to produce wallboard. However, because our gypsum purity is 98%, it will be less difficult and time consuming to remove impurities at the factory. Consequently, our yields will be higher, our efficiency better, and our costs lower than our competitors. In addition, we have the benefit of developing the business during and economic downturn, ideally positioning us for rapid expansion and growth when the construction industry recovers in the next few years.


 MARKET VALUE

The project’s net value is based on the estimated 1Bn core ton gypsum deposit located within the 17,000 acre project. Gypsum can be mined and delivered to customers as crude/crushed rock or as a calcined powder. Calcined gypsum is used as the base for gypsum plaster, gypsum board and other gypsum products.

Table (1) outlines net value for crude gypsum. It the project was placed into full-scale, long-term production and the gypsum mined fully, the projects estimated net value after taxes and acquisition costs would be more than $3 billion.

The project’s net value is based on the estimated 1Bn core ton gypsum deposit located within the 17,000 acre project.

Gypsum can be mined and delivered to customers as crude/crushed rock or as a calcined powder. Calcined gypsum is used as the base for gypsum plaster, gypsum board and other gypsum products.

Table (1) outlines net value for crude gypsum.  It the project was placed into full-scale, long-term production and the gypsum mined fully, the projects estimated net value after taxes and acquisition costs would be more than $3 billion.

Project Financial Projections
Estimated gypsum core tonnage 1,012,000,000
Average crude, f.o.b. mine, dollars per metric ton* $8.50
Taxes, acquisition and operating costs, dollars per metric ton $5.33
Net value per ton $3.17
Estimated net value (US $) $3,208,040,000

Table (2) outlines net value for calcined gypsum.  It the project was placed into full-scale, long-term production and the gypsum fully mined the projects estimated net value after taxes and acquisition costs would be more than $15 billion.

Project Financial Projections
Estimated gypsum core tonnage 1,012,000,000
Average crude, f.o.b. mine, dollars per metric ton* $40.05
Taxes, acquisition and operating costs, dollars per metric ton $25.11
Net value per ton $14.94
Estimated net value (US $) $15,119,280,000

 Source: U.S. Geological Survey, Mineral Commodity Summaries, January 2009

Average calcined, f.o.b. plant, dollars per metric ton currently is approximately $40.05 Average crude, f.o.b. plant, dollars per metric ton currently is approximately $8.50

Please note that this estimate is extremely conservative, and has since been increased . The value is closer to $23 Billion on the CPA Appraisals according to the US Geological Survey, Mineral Commodity summaries. January 2009.


 BUSINESS PROPOSITION

Business terms are negotiable, and the seller will consider a variety of options.

The Seller verifies that:

- She is the sole invested owner and attorney in fact.

- These are MINERAL RIGHTS only.

- Claims are current.

- There are no encumbrances or liens.

Letters from the U.S. Bureau of Land Management (from the Rocky Mountain State involved), certify that the Mining Claim is considered Real Property and can be sold.

Also receipts from the Department Of The Interior and U.S. Bureau of Land Management (from the Rocky Mountain State involved) state that all Mining Claims Maintenance Fees have been paid.

If the buyer is acceptable to our client, she is seeking $225 million for the Mineral Rights that is worth over $23 billion in long term production.


INVESTMENT OPPORTUNITY

• The project can be placed into lucrative long term production and will return the investment with significant profit

• The project can be held for demonstrated appreciation and profitable resale

• The project can be utilized as collateral for financing needs

• The project can be carried on balance sheets at valuation in many countries